HCL Tech Q3 Results Preview: Why IT Giant Likely To Hike Revenue Guidance? Good, Bad, Ugly Expectations Here

Shiv Nadar's IT giant HCL Technologies will announce its Q3 results for FY26. The tech behemoth is expected to report 1% QoQ growth in revenue due to deals ramp-up, while TCV deal wins are likely to be healthy. Following this, experts believe that HCL Tech could increase its revenue growth guidance for FY26. HCL is declaring its earnings alongside its major peer, TCS, which has also proposed to declare interim dividend benefits. Investors will also eye the dividend announcement from HCL Tech. As of now, HCL Tech shares trade under pressure ahead of the results.

HCL Tech Share Price:

At the time of writing, HCL Tech stock traded at Rs 1648.45 apiece on BSE, down by 0.83% with market cap of Rs 4,47,334.12 crore. The stock is near its day's low of Rs 1643.95 apiece.

HCL Tech shares 52-week high and low is at Rs 2,011 apiece and Rs 1,304 apiece respectively.

HCL Tech Q3 Results Preview:

HCL will declare its earnings for the third quarter ended December 31, 2025, on Monday, January 12, 2026, post-closing of Indian stock markets. Following the results, senior management of HCL Technologies will conduct audio conference call at 7:30 p.m. (IST) for 60 minutes to discuss the results followed by the detailed question-answer session.

In Q3FY26, analysts at Kotak Institutional Equities forecast 1.0% qoq growth in the services business, led by the ramp-up of large deals won during the quarter. Seasonality in the products business would have 180 bps qoq incremental contribution to overall revenue growth.

They also forecast an underlying EBIT margin increase of 100 bps qoq to 18.5%, after baking in a 70 bps impact of restructuring charges. We expect healthy TCV of deal wins in the US$2.5 billion range. However, Kotak's analysts also predict that HCL could narrow the overall revenue growth guidance to 3.5-4.5% (from 3-5% earlier) and revise services revenue growth to 4.5-5.0% (from 4-5%) for FY2026 while retaining the 17-18% EBIT margin guidance.

Meanwhile, analysts at Equirus expect HCL's USD revenue growth of 2.1% qoq in CC terms. While they expect CC growth of 0.9% qoq in Services with healthy qoq CC growth in P&P due to seasonal strength. EBITM are expected to improve qoq by 33bps qoq largely led by currency benefits and seasonal strength in P&P which will be partly compensated from expected higher restructuring cost qoq and wage hikes (excluding restructuring cost, EBITM is expected to improve qoq by 78bps).

Furthermore, just like Kotak, analysts at Equirus predict that HCL could announce CC US$ Services Sales growth guidance of 4.25-5.00% (c.3.25-4.00% organic) for FY26E versus current guidance of 4-5% growth. EBIT margins guidance is expected to remain the same between 17-18% for FY26E. Also, TCV deals is likely to be healthy but lower on qoq basis due to high base.

HCL Tech Q3 Results Key Highlights:

Investors should focus ---- as per Kotak --- on--- (1) the path of margin recovery to the 18-19% band, (2) profitability in cost take-out and vendor consolidation deals, (3) deal pipeline and conversion timelines, (4) the state of discretionary spending, (5) the pace of enterprise Gen AI adoption, new opportunities consequent to AI adoption and the likely deflationary impact, (6) drivers behind recent investments in ERD services and products businesses and (7) the underlying environment for growth to accelerate to high-single digits.

Also, analysts at Equirus believe key things to look out in HCL Q3 are --- demand outlook for ER&D services, P&P, business application, IMS and digital services in 4QFY26E & beyond. Impact from ongoing macro issues on HCLT growth/margin outlook or on its clients, if any. Any update on the acquisition strategy in the medium term, capital allocation policy and deal pipeline/wins and dependency on H1B visas.

HCL Tech Dividend FY26

As of now, HCL Tech has not mention any dividend announcement on January 12. In FY26, the company has already delivered interim dividend of Rs 12 each in October and July 2025. While it started FY26 with interim dividend of Rs 18 with ex-date in April 2025.

HCL Tech is among the leading dividend paying company in IT sector.

BUY HCL Tech Shares?

Analysts at Equirus has recommended ADD with target price of Rs 1,635 for December 2026. While analysts at Elara Capital has suggested REDUCE with Rs 1,445 target price. Similarly, analysts at Kotak has recommended REDUCE with fair value of Rs 1,500. These outlook on HCL shares could be revised after Q3 earnings report.

Disclaimer: The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.